BY GARIKAI TUNHIRA
GOVERNMENT has given Kuvimba Mining House the nod to acquire Globe and Phoenix Gold Mine and other associated mines owned by an Australian company, Biometallurgical (Pvt) Ltd in Kwekwe, as the mining giant intensifies efforts to resuscitate idle mines.
The others are Tiger Reef, Primrose and Club mines.
Finance minister Mthuli Ncube confirmed the development saying government was working towards achieving a US$12 billion mining sector by 2023.
He also clarified the shareholding of companies that fall under Kuvimba, particularly Shamva Gold Mine, saying it was 100% owned by Kuvimba Mining House, a joint venture between government, with 65% and international partners led by David Brown, having a 35% stake.
There have been reports that business tycoon Kudakwashe Tagwirei was part of Kuvimba Mining House, but records at the Registrar of Companies show that he is not part of the shareholders of companies that fall under the mining house.
Ncube gave a breakdown of the shareholding structure.
“Shamva Gold Mine is owned 100% by Kuvimba Mining House. Kuvimba is owned 65% by the government of Zimbabwe, and 35% owned by management and international partners, who are led by Mr David Brown, a world-class mining executive and mining entrepreneur,” he said.
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“The 65% government shareholding is split as follows: Government Pension Fund, War Veterans Fund, Pensions Compensation Fund (to compensate pensioners for losses incurred due to the February 2019 currency reforms), Depositors Compensation Fund (to compensate depositors who had $1 000 and below in their bank accounts when currency reforms came into effect in February 2019), Youth Support Fund (administered through the National Venture Fund), Women’s SME Support Fund (administered by the National Venture Fund) and Sovereign Wealth Fund, for future generations administered by government.”
Added Ncube: “Government has been informed by the management of Kuvimba Mining House that it has made an offer to acquire Globe and Phoenix Mine.
“Government as the majority shareholder in Kuvimba has endorsed this transaction, and looks forward to this new asset contributing to the group. Kuvimba’s performance will contribute immensely to the achievement of a US$12 billion mining sector by 2023.”
Globe and Phoenix Mine is located in Kwekwe.
The mine, which has been idle for the past 12 years, will make a very significant impact on the infrastructure and life of the City of Kwekwe.
Brown said Kuvimba has operating assets that would contribute significantly to the country’s economic growth.
“Kuvimba Mining House has three operating gold mines under Freda Rebecca namely Freda Rebecca Gold Mine, Shamva Gold Mine and Jena Mine,” he said.
“The nickel operating mine is Trojan Nickel Mine under Bindura Nickel Mine while the platinum asset is the Darwendale Platinum project operating under Great Dyke Investments. We also have the chrome venture which is Zimbabwe Alloys Limited.”
Brown, the minority shareholder, said Kuvimba was resuscitating idle mines countrywide, creating thousands of jobs in the process.
The reopening of Shamva Gold Mine saw more than 800 employees being taken on board.
